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put away birthday money in a savings account. She would eventually use this money to buy stocks.
STICK WITH THE FAMILIAR
Children are more likely to take an interest in investing in companies for which they have some affinity. “I first bought Nike because I was always wearing Nike shoes,” Ionnie says. The Limited stores, which sell women’s and men’s apparel, and Wendy’s were other favorite picks because they sold products that she used.
TRY DRIP INVESTING
Dividend Reinvestment Plans (DRIPs) are programs that allow individuals to purchase stock directly from the company. Instead of the corporation paying out its regular dividend in the form of cash to its shareholders, the proceeds are used to purchase additional shares. Ann says using DRIPs allows children to purchase a single share of stock and makes the process of tracking a stock easier. For more information, check out the newsletter DRIP Investor at www.dripin vestor.com or call 800-233-5922. Also, visit the archives section at blackenterprise.com.
For starters, check out Black Enterprise’s Teenpreneur magazine for information on saving and investing for teens or go online at www.blackenterprise .com/teenpreneur. Also, Young Money Matters (877-275-6242; http://store.yahoo.com/better investing/70.html) is a NAIC newsletter featuring real-life stories of young investors, education exercises, and money concept games.
SEND YOUR KIDS TO INVESTMENT CAMPS
There are dozens of camps around the country that teach kids how to invest. One worth considering is YoungBiz Better Investing Camps (888-543-7929; www.youngbiz.com). Summer camps are held in several select cities each year and are designed to teach kids how to handle their finances and invest in the stock market.
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